Biz Beat Blog

Denbury profits slip to $90 million

Oil and gas driller Denbury Resources saw its profits slip to $90 million in the fourth quarter, down more than 20 percent from a year ago.

The Plano-based company reported in an earnings release Thursday the drop came as the result of falling oil prices and higher drilling costs.

While rebounding in recent days, U.S. oil prices slipped from $103 a barrel in early October to $96 a barrel in December.

Denbury finished up 2013 with $410 million in profits, a more than 20 percent decrease from the previous year. The company struggled not only with shrinking margins on oil, but a $114 million oil spill cleanup in Louisiana.

Denbury specializes in extracting oil from already tapped oil fields through a technique in which carbon dioxide is pumped underground. Denbury’s crude production, which is focused along the Gulf Coast and Rocky Mountains, rose in the fourth quarter by 4 percent to more than 67,800 barrels a day.

Less than two months into 2014, the company said weather was already putting a damper on this year’s production figures.

“Our 2014 production will likely be in the lower half of our estimated ranges,” CEO Phil Rykhoek said in a statement.

Follow James Osborne on Twitter at @osborneja.

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